West Pharmaceutical Services, Inc. · NYSE:WST
West Pharmaceutical Services — Q4 2014 Earnings Presentation
14 slides from West Pharmaceutical Services's earnings presentation, Feb 19, 2015
Slide 1: Fourth-Quarter 2014 Analyst Conference Call
1 Speakers: Donald E. Morel, Jr. Chairman and Chief Executive Officer William J. Federici Senior Vice President and Chief Financial Officer All trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., unless noted otherwise. West Pharmaceutical Services, Inc. Four
Slide 2: Cautionary Statement Under the Private Securities Litigation Reform Act of 1995
2 Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This presentation and any accompanying management commentary contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are not li
Slide 3: Fourth-Quarter 2014 Summary Results
3 Fourth-Quarter 2014 Summary Results $ millions, except earnings per-share (EPS) data (1) Adjusted diluted EPS is a Non-GAAP measurement. See discussion under the heading “Non-GAAP Financial Measures” in today’s earnings press release and slides at the end of this presentation. ($ millions, except
Slide 4: Fourth-Quarter Operating Results
4 Fourth-Quarter Operating Results All prior-period comparisons exclude the impact of currency • Growth in high-value components and proprietary devices • Pharmaceutical Packaging Systems sales grew 7.7% High-value product sales grew 12.1% Westar and Daikyo RSV products • Pharmaceutical Delivery
Slide 5: Expansion and Product Development
5 Expansion and Product Development Geographic expansion: • Sri City, India seals plant utilization is growing • Waterford, Ireland facility plan: Construction to commence in 2015 High-Value Products: • Initial commercial orders for NovaPure® products • New U.S. capacity for high-value products
Slide 6: 2015 and Long-Term Outlook
6 2015 and Long-Term Outlook 2015 Guidance* Anticipate organic revenue growth of 6% to 8%, excluding currency • Adverse currency expected to impact growth by 5% - 6% Adjusted diluted EPS estimate in the range of $1.74 to $1.92 • Expected comparative impact of currency: $0.18 to $0.20 PPS: HVP
Slide 7: Change in Consolidated Sales Fourth-Quarter 2013 to 2014
7 Change in Consolidated Sales Fourth-Quarter 2013 to 2014 ($ millions) $349.8 $14.7 $3.5 $23.2 $2.1 $342.7 2013 Sales Volume & Mix Sales Price Currency Disposition 2014 Sales
Slide 8: Change in Consolidated Gross Profit Margin %
8 Change in Consolidated Gross Profit Margin % Fourth-Quarter 2013 to 2014 31.4% 1.0% 0.7% 0.4% 0.2% 31.1% 2014 2013
Slide 9: Change in SG&A Costs Fourth-Quarter 2013 to 2014
9 Change in SG&A Costs Fourth-Quarter 2013 to 2014 ($ millions) $58.8 $1.4 $1.4 $0.7 $0.7 $0.9 $0.7 $60.0
Slide 10: Cash Flow Metrics
10 Cash Flow Metrics ($ millions) (1) 2013 capital expenditures included $35 million of 2013 funding associated with the Company’s new headquarters and research facility, most of which was incurred and recorded in earlier years Twelve Months Ended December 31, 2014 2013 Depreciation and amortization
Slide 11: Summary Balance Sheet Information
11 Summary Balance Sheet Information ($ millions) † Net Debt and Total Invested Capital are Non-GAAP measures. Net debt is determined by reducing total debt by the amount of cash and cash equivalents, and for purpose of measuring net debt to invested capital, total invested capital is the sum of net
Slide 12: 2015 Full-year Financial Guidance
12 2015 Full-year Financial Guidance ($ millions, except EPS) Estimated 2015 Revenue(1) Estimated Gross Profit %(1) Pharmaceutical Packaging Systems Segment $1,020 - $1,040 36.9% to 37.4% Pharmaceutical Delivery Systems Segment $410 - $420 19.9% to 20.4% Consolidated $1,430 - $1,460 32.1% - 32.6 % C
Slide 13: Notes to Non-GAAP Financial Measures
13 Notes to Non-GAAP Financial Measures For additional details, please see today’s press release and Safe Harbor Statement. Today’s press release, these presentation materials and associated presentation use the following financial measures that have not been calculated in accordance with generally
Slide 14: Notes to Non-GAAP Financial Measures: Reconciliation of Non-GAAP Measures
14 Notes to Non-GAAP Financial Measures(1) RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) (in millions, except per share data) (1) See “Notes to Non-GAAP Financial Measures” (Slide 13), “Cautionary Statement” (Slide 2) and today’s press release for an explanation and reconciliation of these items.
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